Most Americans didn’t realize it, but something BIG changed in the U.S. gold market at the beginning of 2017. While precious metals sentiment and buying in the U.S. has dropped off considerably in the first quarter of 2017, the East continues to acquire gold, HAND OVER FIST.
The US Gold Market
How much gold? Well, let’s just say... U.S. gold exports have nearly doubled during JAN-FEB 2017 versus the same period last year:
Total U.S. gold exports JAN-FEB 2017 surged to 101 metric tons (mt), compared to 56.5 mt last year. This is quite interesting because the total U.S. gold mine supply plus gold imports for JAN-FEB 2017 only equaled 80 mt. Thus, the U.S. suffered a 21 mt gold supply deficit in the first two months of the year. This means someone had to liquidate an additional 21 mt of gold from their vaults to export to the East... where they still understand the vital role of gold as REAL MONEY.
And where did the majority of U.S. gold exports head to? You got it... Hong Kong-China & India:
Of the 101 mt of U.S. gold exports JAN-FEB 2017, Hong Kong-China and India received 61.8 mt or nearly two-thirds of the total. Switzerland received 28 mt, the U.K. imported 5.6 mt and the U.A.E. acquired 3.3 mt. The remaining 2.3 mt went to various countries such as Germany, Canada, and Mexico.
What is also quite interesting, is that the majority of the year-over-year increase went to Hong Kong-China and India. U.S. gold exports to Hong Kong-China and India doubled from 31 mt during JAN-FEB 2016 to 61.8 mt JAN-FEB 2017.
What does this all mean? It means as U.S. precious metals investors continue to BICKER, COMPLAIN, BELLY-ACHE, and WHINE about the low gold price, the Chinese and Indians smile as they continue to exchange increasingly worthless fiat money for the shiny yellow metal.
Matter-a-fact, I have heard from several sources, that many precious metals investors in the U.S. are selling gold into the market. This has to be one of the STUPIDEST things to do. Of course, if a person needs to sell gold to purchase something or pay bills... that is understandable. But, to sell gold because of low market sentiment, goes against all sound reasoning and logic to own gold.
People need to realize the U.S. and global financial and economic systems are in the BIGGEST BUBBLE in history. To sell one’s GOLD INSURANCE at this time, makes me wonder… what the hell happened to IQ’s recently?
About the Author:
Independent researcher Steve St. Angelo started to invest in precious metals in 2002. In 2008, he began researching areas of the gold and silver market that the majority of the precious metal analyst community has left unexplored. These areas include how energy and the falling EROI – Energy Returned On Invested – stand to impact the mining industry, precious metals, paper assets, and the overall economy.